COMPANY NEWS; L-3 IS PURCHASING CAE'S MARINE CONTROLS UNIT

Published: November 2, 2004

L-3 Communications Holdings, which makes bomb detectors, said yesterday that it had agreed to buy CAE's marine controls unit for 328 million Canadian dollars ($268 million) in cash and assumed debt. The unit has 460 employees and represents 15 percent of CAE's revenue and 27 percent of its earnings. L-3 said that the purchase was expected to contribute about $110 million to sales in 2005 and add to earnings. For L-3, based in New York, the deal will expand its sea-oriented businesses by giving it shipboard control systems for warships and commercial vessels. CAE is based in Toronto.